The Business Re-engineering Scheme
Many of the local businesses have faced some hardships over the past 9 months ever since COVID-19 hit the island along with the rest of the world. We all had to adjust to new ways of working to combat the pandemic and to strive for survival. Now that the wheel is slowly turning again, it is time to pause and rethink our business. The pandemic has changed the behaviours of many critical stakeholders found in the value chain; it changed the behaviours of customers, the market we operate in and the business itself. We know that what has worked before, might no longer work now. Businesses are exploring new modus operandi, hoping to do more with less.
Through the Business Re-Engineering and Transformation Scheme issued last November, SMEs have the opportunity to realign their business activity to reflect the new realities, embrace the strong current of change and transform their operating model. Businesses that apply for this scheme can benefit from a cash grant of up to 50% to a maximum of €5,000 of the advisor’s service fee incurred. To be eligible for this scheme, the business project must be of strategic importance and should address at least one of the objectives stated in the scheme guidelines.
Projects must be of strategic significance and should address one or more of the following objectives:
- Digitisation of business processes including the deployment of digital technologies, such as IoT, artificial intelligence, machine learning and predictive analysis;
- Improvement in operational performance, reduction of errors and improvement in accountability following a review processes to identify inefficient use of resources;
- Improvements to the flow of goods, materials and/or information following a review of the interaction between functions;
- Improvement of environmental performance by identifying waste streams and resource usage;
- Supporting the implementation of quality systems and the attainment of product process certifications;
- Reviews to customer handling procedures and proposing solutions to enable excellent customer service; and
- Assessment of market dynamics, fluctuation in demand and changes in consumer behaviour to reposition product and service offering as may be required.
The purpose of this scheme is to instigate and initiate change within businesses. Although the scheme addresses several objectives, there are business impacts and benefits which are common across all industries. The most common benefits are as follows:
INCREASED PRODUCTIVITY THROUGH PROCESS AUTOMATION AND IMPROVED WORKFLOWS
With the introduction of new technology, businesses can perform at their optimum with the least required resources. In a 2018 study, digitisation helped SMEs to raise revenue by an average of 26% and reduce costs by 22%. In another study, it is estimated that employees spend 520hours a year on repetitive tasks which could be automated.
REDUCTION IN OPERATING COSTS
In a recent article, it was identified that the operational cost of staff can be as high as 71% of the total cost, this is an exorbitant amount which inflates costs. Being competitive today means reducing the operating cost and offering high quality products or services with the best value for money. By improving the operational performance, business can create that competitive advantage over their competitors.
BETTER DECISION MAKING THROUGH LEVERAGING DATA
The ability to predict potential trends and patterns through artificial intelligence and machine learning, provides businesses a leeway which allows them to plan ahead and be the first in the market. It is critical to secure a spot in a market and to continue to be agile to reflect the client’s need.
ENHANCED CUSTOMER EXPERIENCE
Customer-centric companies are approximately 60% more profitable when compared to similar laggard companies that do not focus on their customers. A positive customer experience can make or break a business as Loyal customers are five times more likely to purchase again and four times more likely to refer a friend to the company. Therefore, improving customer experience is critical in an aggressive market.
HOW CAN RSM HELP YOU?
RSM Malta consultants are approved to provide Business Reengineering Consultancy under the scheme. Our team of experts can help you at various touchpoints throughout your transformation journey. We can help drive transformation enabled by this scheme by:
- Identifying paths for digital solutions;
- Evolving your business model, markets and customer engagement;
- Developing a clear strategy and actionable road map;
- Designing an integrated digital ecosystem;
- Building a viable foundation and digital platform; and
- Continually improving to remain viable in your market.